Omega Healthcare Investors(OHI) - 2025 Q4 - Annual Results

Financial Performance - Net income for Q4 2025 was $172 million, or $0.55 per diluted share, compared to $116 million, or $0.41 per diluted share for Q4 2024, representing a 48.3% increase in net income year-over-year[4] - Adjusted Funds From Operations (AFFO) for Q4 2025 was $250 million, or $0.80 per diluted share, up from $214 million, or $0.74 per diluted share in Q4 2024, reflecting a 16.8% increase[4] - Funds Available for Distribution (FAD) for Q4 2025 was $238 million, or $0.76 per diluted share, compared to $202 million, or $0.70 per diluted share in Q4 2024, indicating an 17.8% increase[4] - Total revenues for the year ended December 31, 2025, increased to $1,190,099, up 13.2% from $1,051,390 in 2024[47] - Net income for the year ended December 31, 2025, was $609,467, representing a 46% increase from $417,804 in 2024[49] - Nareit Funds From Operations (FFO) for the year ended December 31, 2025, reached $898,907, a 22.5% increase compared to $733,912 in 2024[49] - Adjusted Funds From Operations (AFFO) for the year ended December 31, 2025, totaled $946,155, up 21.6% from $778,137 in 2024[49] Investments and Acquisitions - Total new investments in 2025 amounted to $1.1 billion, including $680 million in real estate acquisitions, $69 million in real estate loans, and $342 million in investments in unconsolidated entities[9] - The company completed $119 million in real estate acquisitions in February 2026, further expanding its portfolio[14] - In January 2026, the company acquired a 9.9% equity interest in the Saber OpCo JV for $93 million, with expected quarterly cash distributions equivalent to an annualized yield of 8%[12] Debt and Financing - The company repaid $1.27 billion of aggregate debt in Q4 2025, contributing to a total of $1.7 billion in debt repayments for the year[4][9] - The company issued 5.5 million Omega OP Units valued at $222 million in Q4 2025 as part of its investment in the Saber PropCo JV[4] - The Company entered into a new $2 billion ATM Program in November 2025, replacing a previous $1.25 billion program[4] - The Company repaid $600 million of 5.25% senior unsecured notes at par value on October 15, 2025[25] - A total of $428.5 million term loan was repaid prior to its scheduled maturity using available cash and proceeds from the 2028 Term Loan[27] - The Company drew the full commitment on its $300 million delayed draw unsecured term loan facility in November 2025[26] Cash and Liquidity - Total cash and cash equivalents were reported at $27.0 million as of December 31, 2025, with $1.8 billion in undrawn capacity under its unsecured revolving credit facility[28] - The Company expects approximately $15 million to $25 million per quarter in asset sales throughout 2026[31] - Cash and cash equivalents significantly decreased to $27,024 as of December 31, 2025, from $518,340 in 2024[45] Shareholder Returns - The company declared a quarterly cash dividend of $0.67 per share, payable on February 17, 2026[29] - The company declared dividends of $0.67 per common share for both the three months and year ended December 31, 2025, consistent with 2024[47] - The company reported a total of 295,539 common shares outstanding as of December 31, 2025, an increase from 279,129 shares in 2024[45] Non-GAAP Measures - Adjusted FFO is calculated as Nareit FFO excluding non-cash stock-based compensation and certain revenue and expense items[53] - FAD is calculated as Adjusted FFO less non-cash expenses, including amortization of deferred financing costs and straight-line rent[53] - The Company believes that Adjusted FFO and FAD provide an enhanced measure of operating performance for its core portfolio as a REIT[53] - Non-GAAP measures like FAD are used for performance-based compensation metrics for officers[54] - The Company excludes depreciation, amortization, and impairments to facilitate comparisons of operating performance between periods[54] - These non-GAAP measures should not be considered substitutes for GAAP measures, including net income[54] - The computation of Adjusted FFO and FAD may not be comparable to similar measures reported by other REITs[53] - The Company believes these measures assist users in analyzing its operating performance[54] - Investors should not rely on non-GAAP measures as indicators of liquidity or cash flow[54] - The Company emphasizes that these measures are not measures of financial performance under GAAP[54]